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Consignment agreement - sample

Dear all, Recently some of you have shared advice on consignment
situations. I need to create a consignment agreement for the
designer I work for, who is considering working with several
galleries. I have never even read a consignment agreement, so I am
looking for advice. I have done some looking in the archives, but
have not found very specific I can write something
based on the main topics discussed, such as displaying merchandise
prominently, who is responsible for insurance, length of time for
consignment, payment methods, etc., but I fear I will leave out
something important. I have found one site on the web that shows a
sample agreement, but it doesn’t inspire total faith. Does anyone
out there have a good source for sample agreements they could direct
me to? I’m thinking if I could review several of them, I could
tailor something to our specific situation and stand a much better
chance of not leaving out vitally important details. Thank you all
and keep in touch.

david lee jeweler
Mason City, Iowa

The following was excerpted and adapted from “Business and Legal
Forms for Crafts” by Tad Crawford.


Agreement made as of this “???DATE”, between “???ARTIST NAME”
(hereinafter referred to as the “Artist”), located at “???ARTIST
ADDRESS” and “???GALLERY NAME” (hereinafter referred to as the
"Gallery"), located at “???GALLERY ADDRESS”.

WHEREAS, the Artist is a professional artist of good standing; and

WHEREAS, the Artist wishes to have certain artworks represented by
the Gallery, and

WHEREAS, the Gallery wishes to represent the Artist under the terms
and conditions of this Agreement,

NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants hereinafter set forth and other valuable
consideration, the parties hereto agree as follows:

  1. Scope of Agency. The Artist appoints the Gallery to act as
    Artist’s nonexclusive agent in the following geographic area:
    "???GEOGRAPHIC AREA", for the exhibition and sales of artworks in
    the following media: “???MEDIA”. The Gallery shall document receipt
    of all works consigned hereunder by signing and returning to the
    Artist a Record of Consignment in the form annexed to this contract
    as Appendix A.

  2. Term and Termination. This Agreement shall have a term of five
    (5) years and may be terminated by either party giving sixty (60)
    days written notice to the other party. The Agreement shall
    automatically terminate with the death of the Artist, a change in
    Gallery ownership or location outside the area of “???GEOGRAPHIC
    AREA”, or if the Gallery becomes bankrupt or insolvent. On
    termination, all works consigned hereunder shall immediately be
    returned to the Artist at the expense of the Gallery.

  3. Commissions. The Gallery shall receive a commission of fifty
    (50) percent of the retail price of each consigned work sold. In
    the case of discount sales, the discount shall be deducted from the
    Gallery’s commission. The Gallery shall receive a commission of
    forty (40) percent of the retail price of each commissioned work

  4. Prices. The Gallery shall sell the works at the retail prices
    shown on the Record of Consignment, subject to the Gallery’s right
    to make customary trade discounts to such partners as museums and

  5. Payments. The Gallery shall pay the Artist all proceeds due to
    the artist within thirty (30) days of sale for all work on
    consignment. No sales on approval or credit shall be made without
    the written consent of the Artist and, in such cases, the first
    proceeds received by the Gallery shall be paid to the Artist until
    the Artist has been paid all proceeds due. Payment for commissioned
    work or special order work is due and payable upon delivery to the

  6. Accounting. The Gallery shall furnish the Artist with an
    accounting every month in the form attached hereto as Appendix B,
    the first such accounting to be given on the first day of July,

  7. Each accounting shall state for each work sold during the
    accounting period the following the Artist’s inventory
    number of the work, the date of sale, the sale price, the amounts
    due the Gallery and the Artist, the location of all works consigned
    to the Gallery that have not been sold and if the retail sale price
    is over five hundred dollars ($500), . the name and address of the
    purchaser. An accounting shall be provided in the event of
    termination of this Agreement.

  8. Inspection of Books. The Gallery shall maintain accurate books
    and documentation with respect to all transactions entered into for
    the Artist. On the Artist’s written request, the Gallery will
    permit the Artist or the Artist’s authorized representative to
    examine these books and documentation during normal business hours of
    the Gallery.

  9. Loss or Damage. The Gallery shall be responsible for the
    safekeeping of all consigned artworks. The Gallery shall be
    strictly liable for loss or damage to any consigned artwork from the
    date of delivery to the Gallery until the work is delivered to the
    Artist or a purchaser. In the event of loss, the Artist shall
    receive the same amount as if the work had been sold at the retail
    price listed in the Record of Consignment. In the event of damage
    that in the opinion of the Artist, cannot be repaired, the Artist
    shall receive the same amount as if the work had been sold at the
    retail price listed in the Record of Consignment. In the event of
    damage that in the opinion of the Artist, can be repaired, the
    Artist shall receive payment for his time and materials used to make
    the repair.

  10. Alterations. No alterations of any kind may be made to
    consigned artwork by any person other than the Artist without the
    written consent of the Artist. In the case of alteration without
    written consent of the Artist, the Artist shall receive the same
    amount as if the work had been sold at the retail price listed on the
    Record of Consignment.

  11. Returns. Returns of sold work to the Gallery more than thirty
    (30) days after the original sale date, without the written consent
    of the Artist, become property of the Gallery and the Artist shall
    receive payment therefor if not already paid. Returns of
    Commissioned work are possible solely at the discretion of the Artist
    and may require a service charge.

  12. Insurance. The Gallery shall insure the work for fifty (50)
    percent of the retail price shown in the Record of Consignment.

  13. Copyright. The Gallery shall take all steps necessary to
    insure that the Artist’s copyright in the consigned works is
    protected, including but not limited to requiring copyright notices
    on all photographic or electronic reproductions of the works used
    for any purpose whatsoever.

  14. Security Interest. Title to and a security interest in any
    works consigned or proceeds of sale under this Agreement are
    reserved to the Artist. In the event of any default by the Gallery,
    the Artist shall have all the rights of a secured party under the
    Uniform Commercial Code and the works shall not be subject to claims
    by the Gallery’s creditors. The Gallery agrees to execute and
    deliver to the Artist, in the form requested by the Artist, a
    financing statement and such other documents which the Artist may
    require to perfect his security interest in the works. In the event
    of the purchase of any work by a party other than the Gallery, title
    shall pass directly from the Artist to the other party. In the
    event of the purchase of any work by the Gallery, title shall pass
    only upon full payment to the Artist of all sums due hereunder. The
    Gallery agrees not to pledge or encumber any works in its
    possession, nor to incur any charge or obligation in connection
    therewith for which the Artist may be liable.

  15. Assignment. This Agreement shall not be assignable by either
    party hereto, provided, however, that the Artist shall have the
    right to assign money due him hereunder.

  16. Arbitration. All disputes arising under this Agreement shall
    be submitted to binding arbitration, before a mutually acceptable
    arbiter in the County of San Diego, California and the arbitration
    award may be entered for judgement in any court having jurisdiction
    hereof. Notwithstanding the foregoing, either party may refuse to
    arbitrate when the dispute is for a sum of less than five hundred
    dollars ($500).

  17. Modifications. All modifications of this Agreement must be in
    writing and signed by both parties. This Agreement constitutes the
    entire understanding between the parties hereto.

  18. Governing Law. This Agreement shall be governed by the laws of
    the State of California.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement as
of the date first set forth above.


Authorized Signatory, Title

Steven Brixner Design - San Diego CA USA

This book has sample forms to copy and use or retype

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Elaine Luther
Chicago area, Illinois, USA
Certified PMC Instructor